The Senate Banking Committee will likely advance Kevin Warsh’s nomination to the Federal Reserve along party lines this morning, hours before current Chair Jerome Powell holds what’s expected to be his last press conference.
Just one Democrat has so far said they’ll support Warsh, whom the Senate confirmed by voice vote two decades ago: Sen. John Fetterman of Pennsylvania, who told Semafor Tuesday he plans to vote for Warsh on the floor.
Fed watchers told Semafor the partisan votes may make it harder for Warsh to get reconfirmed down the road — but shouldn’t affect his ability to build lawmaker relationships or retain investors’ trust.
“Partisan votes on confirmations are sort of the norm these days,” said former Richmond Fed president Jeffrey Lacker. “I don’t think … confidence in his general capabilities is going to be affected.”
Today’s big question is whether Powell, whose term as governor doesn’t end until 2028, will stay on beyond Warsh’s confirmation.
“I see a rational basis for [Powell] sticking around” until the Justice Department wraps up its appeal and the Fed’s inspector general completes its review, Sen. Thom Tillis, R-N.C., said.